Macroeconomics

Orders for durable goods rise 2.1% in July

U.S. ECONOMY DURABLE GOODS

BY MATT OTT | ASSOCIATED PRESS

Orders to U.S. factories for large manufactured goods rose for the second straight month, but the strength again came from a big increase in the volatile aircraft category.

A category that tracks business investment also rose for the second straight month, though last month’s reading was revised down significantly. 

What happened Orders for durable goods — items meant to last at least three years — rose 2.1%, the Commerce Department said Monday.

That follows a 1.8% gain in June, which helped to offset significant declines in May and April.

A category that serves as a proxy for business investment rose 0.4%, but last month’s gain of 1.9% was revised down to 0.9%.

Economists are concerned about a slowdown in business investment orders because it could imply that companies are getting hit by an escalation in trade disputes, particularly with China.

The U.S.-China trade dispute ratcheted up again on Friday, when China announced new tariffs on $75 billion of U.S. products, deepening a conflict

Economists are concerned about a slowdown in business investment orders because it could imply that companies are getting hit by an escalation in trade disputes, particularly with China. AP

over trade and technology that some economists worry could tip a fragile global economy into recession. 

Challenges for manufacturers U.S. manufacturers are facing numerous challenges, most significantly the trade showdown.

President Donald Trump’s proposed tariffs on foreign goods has prompted other countries to levy retaliatory tariffs on U.S. products. 

2.1% Rise in orders for durable goods.

1.8% Rise in orders for durable goods in June.

0.4% Rise in category that serves as a proxy for business investment.